N Brown returns to profit despite declining sales in August

In the UK, N Brown, the owner of Simply Be, reported a profit of £200,000 for the six months ending in August 2024, a significant recovery from a £2.8 million loss during the same period the previous year. This turnaround was attributed to reduced administration and payroll costs, a focus on profitable sales, and an improving turnover trajectory. Despite this profit, total revenue fell by 6.7% to £277.2 million, primarily due to a 7.9% decline in product sales, which were impacted by unseasonal weather and subdued consumer spending. The company noted an 8.1% drop in total orders, totaling 3.4 million, although the average transaction value increased slightly from £83.30 to £84.10. Looking ahead, N Brown expressed optimism for the second half of the financial year, anticipating a recovery in sales supported by increased marketing efforts. The company also reported that in the first five weeks of the third quarter, product revenues were only down 2% year-on-year, indicating a potential stabilization in sales. CEO Steve Johnson emphasized the importance of maximizing profitable sales while managing costs in a challenging trading environment. N Brown's previous financial year ended with a profit of £5.3 million, a notable recovery from a £71.1 million pre-tax loss in the prior year, showcasing the company's resilience amid market challenges.